Should You Avoid QCR Holdings, Inc. (QCRH)?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dropped their entire stakes in the stock during the third quarter. At the top of the heap, Joseph A. Jolson’s Harvest Capital Strategies dropped the biggest investment of all the hedgies monitored by Insider Monkey, comprising about $0.4 million in stock, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital was right behind this move, as the fund dumped about $0 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to QCR Holdings, Inc. (NASDAQ:QCRH). We will take a look at Federal Agricultural Mortgage Corp. (NYSE:AGM), Suffolk Bancorp (NYSE:SCNB), Lindblad Expeditions Holdings Inc (NASDAQ:LIND), and DXP Enterprises Inc (NASDAQ:DXPE). This group of stocks’ market valuations resemble QCRH’s market valuation.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $37 million. That figure was $47 million in QCRH’s case. Lindblad Expeditions Holdings Inc (NASDAQ:LIND) is the most popular stock in this table. On the other hand Suffolk Bancorp (NYSE:SCNB) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks QCR Holdings, Inc. (NASDAQ:QCRH) is even less popular than SCNB. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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Disclosure: None